Barron's Buzz: Plunging Profit Estimates

This transcript has been automatically generated and may not be 100% accurate.

... because what we take a sneak peek at what is in tomorrow's ... nice but I'm here with a thick slices of hopping on just now seen as an add on saw some in the Safari thick slices of Atlanta ... what's a small one ... this lets ... you keep the friends of little things is that some of my time when the Mike and I know ... this through very awesome ... how to tell the story which is that that right ... profit estimates ... heading south WhatsApp plunging and in some ways that's that's nothing new we see that in most years earnings estimates are too high but we think things can ... be little different this year ... first Call it the third quarter numbers of more to come down quite a bit this overhaul for an acceleration nice ... if the fourth quarter numbers the ... real problem highly unrealistic ... in a thing as ... valuations young and the stock market is up eighteen percent over the past year Boeing had two percent earnings growth this quarter versus last year so ... you seen valuations really increase ... the market is ... priced on par with its historic average ... verses forward earnings estimates ... but those estimates don't look terribly realistic and when you make more realistic assumptions ... the market begins to look a lot about Christ or ... so we've got some pockets you know for for for people to gravitate toward and pockets to avoid ... it think that there were more like an airport blessed corporates I think sinkhole for me to the twenty seventh August update again that is the getting new news cycle for the smooth on in the muni bonds on the must read because the autocrat axing of them this and shake shake in this market you say ... the return of five percent meat on New Bonds got clobbered long-term bonds got clobbered more communities have gotten hit especially hard ... and of course with bonds as prices for yields increase we have a situation now work ... muni yields is starting to look attractive relative to to some other choices out there and things like corporate bonds ... junk bonds things like that ... so is possibly a five percent ... of decent quality long term As for issues that can be if you were to hike tax break bracket back to the equivalent of seven or eight percent return ... block something like that and ... and and he's ready to fight ... high tax bracket eventually they hope a lot to do with cheap to get even richer basically I did last year saying that the rich get a better deal here I just did I just sit on the move onto the Intel small funds peep is clearly ... in sight and ... then sold could be ... in the coming out with its next generation of chips from for mobile phones sooner than expected on how a realistic shot here of gaining market share these tips for ... a bigger deal than they've been passed on to them and ... focusing more on this